14
JAYA TIASA HOLDINGS BERHAD
chairman’s statement (cont’d)
Plywood Outlook and Strategy
Demand for plywood is expected to improve gradually in
line with economic recovery in our key markets. Our focus
will be on large importing countries such as South Korea,
Taiwan, China / Hong Kong and Japan.
The group will adopt a dynamic strategic approach in an
increasingly competitive global environment, taking into
account the scarcity of resources, the volatility of foreign
exchange rates and volatile crude oil prices. The group will
strengthen its current measures to maintain and enhance its
competitive edge, and these include harnessing its existing
production technology towards improving operational
efficiency and product quality, and being innovative in
producing more value-added products for niche markets
to enhance margins.
Oil Palm
The division underperformed during the year under review
by suffering pre-tax loss of RM21 million, a sharp contrast
to the RM33 million pre-tax profits reported in previous year.
143,923
149,757
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
2015
2014
Plywood Production
(m
3
)
148,408
145,433
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Plywood Sales
(m
3
)
2014
2015
20%
1% 7%
19%
13%
40%
Korea
Japan
China / Hong Kong
Taiwan
Middle East
UK/Europe
Plywood Export by Destination 2015
Plywood
In FY2015, the plywood division contributed about 26%
to the total revenue of the Group. Plywood sales volumes
decreased by 2% YoY, while the average selling prices
decreased by 2%. The market for plywood has been
challenging ever since the economic downturn. To maximize
our revenue and profit as well as to maintain our existing
markets, we maintained our strategy in producing more
high value products.
During the year, Korea emerged as our largest export
destinations, accounting for 40% of total plywood exports
of the group in US Dollar terms. Total export sales to the
country increased by 11% in volume. The reduced anti-
dumping duty rate from previous 6.43% to current 3.08%
has worked us favor. Other major exports markets were
Taiwan, China / Hong Kong and Japan.
